China | We’re still largely sanguine on price pressures
Large price increases for commodities and China’s heavy industry output continue to worry businesses, markets, and policymakers. If these price increases are sustained, it could lead to substantial consumer price inflation and thus force the PBoC to tighten monetary policy prematurely. Other concerns are that profitability in downstream sectors could get squeezed excessively, while some worry that the price pressure may spill over into prices for exports, potentially leading China to “export” its inflation.
Download this report to find out:
- What’s driving prices higher?
- What measures did China introduce to rein in prices for commodities and in heavy industry, and will they work?
- Will China export its inflation?
- Our latest China CPI and PPI forecasts.
High debt costs suggest European office price correction
Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.Find Out More
Why an ageing population doesn’t mean soaring inflation
What’s the future for inflation? Joachim Nagel, the new president of Germany's central bank, believes the rapidly ageing global population will play a key role – ramping up pressure on prices in the medium term. While we agree slowing labour supply will stifle output growth, in his recent discussion Nagel failed to fully consider the demand side of the argument.Find Out More